Whoever told you that only hard core professionals get to make money in the options market is quite right. You can invest in mutual funds and you can be buying into stocks without ever taking an expert advice and you could go by your instincts. These investments are not time bound contracts and so you can wait for any length of time till these investments reach the profitability level that you had planned. Whatever happens you will get your money back. Especially when you have not leveraged and you have invested your own money you will not worry about when the investment is going to make money for you.
When you want to strike it big you enter into options contract which is a time bound contract. You will have to plan your entry and exit precisely as otherwise there is a danger of loosing all your money. For this you will have to learn every thing about options, the perfect entry and exit, the maximum risk involved and straddles and strangles. It would be very nice if you could learn this vast chapter in investment from more than one person so that you could come to grasp the strategies involved in dealing with options. The options university would be the excellent place to learn the ropes in the options trade and gradually you could take the advice of the experts and get involved in the options trading system.
It will be surprising to know what a correctly planned options trade that is based on a trading advice from an experienced person. When on 9/11 the twin towers were blasted and the world trade center was brought crashing to the grounds the stock market too crashed like a pack of cards. The smart traders who had bought put options only a week back made a hell of a lot of money. A single dollar invested in buying a put option was worth $215 a week later when the market crashed after the terrorist attacks.
You buy call options if you hope that the market is going to go up in the short time. Similarly you buy put options if you think that the market is going to come crashing down. Single stock options are also available which you can buy and sell judiciously if you have a definite trading plan to trade in the particular stock. Please note all these options contracts are potential time bombs waiting to explode.
Let me explain why. This is the precise reason you should not trade without expert trading advice in the options. An option expires by the end of the month if you buy a monthly options contract, for example. So you can not indefinitely wait to make a profit in the option you have bought. There are many instances when you may have to jump out of the option if the underlying stock performs in the opposite direction. Only experts can give you timely advice to book a small loss and get out. Invest in options wisely and there is a great deal of money to be made.The
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